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Advise | Design | Integrate | Deliver
Employee Engagement – Serco’sJourney
Serco Internal
2 The Barriers
The Journey so far
3
Why
Agenda
4
How
The Tipping Point5
2
1
Serco Internal
The Journey So Far....
Serco Internal
The Barriers
4
 Engagement was just a survey
 No senior leader buy-in
 No accountability – it’s HR!
 No internal evidence
 No resources
 No sharing best practice – suspicion
Serco Internal
How?
5
 Reality check - get out and about in the
business
 Creation of an Engagement Strategy
 Develop case studies
 Redesign and reposition the survey
 Set up a Global Engagement network
 Create resources to support managers
 Business Linkage analysis
 Develop an Engagement Master Class
 Utilise internal social media platform
 Build strong links with key stakeholders –
internal and external
Serco Internal
Why……
…does Engagement matter to -
Serco Internal
7
Engagement matters if we’re to become the World’s
Greatest Service Company
Serco Internal
8
Serco Customer Net
Promoter Scores (NPS)
Contracts with high levels of
employee engagement (65%+
engaged)
Contracts with opportunity
levels of employee
engagement (45-64%
engaged)
Contracts with risk levels of
employee engagement (30-
44% engaged)
Contracts with destructive
levels of employee
engagement (<30% engaged)
Based on analysis of 133 contracts and 489 customers in the
UK and Europe division in 2011.
Employee
engagement is a tool
that can help retain
and win new
customers
Serco has found that where employee engagement
is high, there are more customers promoting Serco
Serco Internal
9
At Serco, trend analysis
suggests high employee
engagement predicts future
customer satisfaction. The
reverse relationship of
customer satisfaction
predicting future employee
engagement does not
appear to be as strong.
The effects of employee engagement become
stronger over time
*IMPORTANT: We need to acquire the next wave of customer survey data to begin establishing whether the trend is
statistically significant or not.
….but employee engagement will catch up with them if they
neglect it
Serco Internal
1
0
Contract Director’s view of their
contract?
Employees’ experience of Serco
delivering the contract?
Is this sustainable?
Immediate successes might tempt some to ignore engagement or
say ‘what we’re doing now works and it doesn’t matter…..’
Serco Internal
The five contract groups with notable relationships:
How do employee engagement scores compare to operating profita
14%
11%
7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
High employee
engagement (65%+)
Opportunity employee
engagement (45-64%)
Risk / Destructive
employee engagement
(<45%)
Operating Profit (EBIT) as a % of revenues
1
1
High engagement contracts produced DOUBLE the operating profits of
risk/destructive engagement contracts.
Contract groups
represented
Division reference
Health UK and Europe
Facilities Management UK and Europe
Public Sector Education SGS UK and Europe
Justice and Corrections ASPAC
Middle East SME
Serco Internal
1
2
Contract
Bid: £10m
Contract Bid:
£10m
+ Engaged employees
+ Governing
Principles
+ Rapid engagement
of TUPE employees
Contract
Bid: £10m
+ Specialist
experience of
similar
contract
Contract
Bid: £10m
+ experience
of having
world’s
largest
contract
portfolio
Contract
Bid: £10m
+ well known
brand name in
the market
And it’s more than the numbers, it will make us
stand out among competitors!
Serco Internal
1
3
Build a balanced
portfolio
Maintain high
rebid and new
win rates
Make strategic
acquisitions
Develop new
models
• Engaged
employees are
committed to
us. That
reduces the
risk that we
lose our
expertise that
we can
transfer to
other markets.
• Engagement
helps build our
base of
customer
promoters.
This will help
improve our
rebid and new
win rates.
• Engagement
helps to
strengthen our
brand and
reputation.
That helps
make a better
case for
acquisition by
Serco.
• Engagement
can help us
collaborate
effectively.
• Engagement
has been
found to
correlate with
innovation and
new ideas.
To become the World’s Greatest Service
Company
Engagement will help us deliver on the core
elements of our strategy
Serco Internal
The Tipping Point
14
Disengagement!
Serco Internal
The Tipping Point
15
Advise | Design | Integrate | Deliver
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PPMA Annual Seminar 2014 - Public and Proud - Workforce Engagement for the Future

  • 1. Advise | Design | Integrate | Deliver Employee Engagement – Serco’sJourney
  • 2. Serco Internal 2 The Barriers The Journey so far 3 Why Agenda 4 How The Tipping Point5 2 1
  • 4. Serco Internal The Barriers 4  Engagement was just a survey  No senior leader buy-in  No accountability – it’s HR!  No internal evidence  No resources  No sharing best practice – suspicion
  • 5. Serco Internal How? 5  Reality check - get out and about in the business  Creation of an Engagement Strategy  Develop case studies  Redesign and reposition the survey  Set up a Global Engagement network  Create resources to support managers  Business Linkage analysis  Develop an Engagement Master Class  Utilise internal social media platform  Build strong links with key stakeholders – internal and external
  • 7. Serco Internal 7 Engagement matters if we’re to become the World’s Greatest Service Company
  • 8. Serco Internal 8 Serco Customer Net Promoter Scores (NPS) Contracts with high levels of employee engagement (65%+ engaged) Contracts with opportunity levels of employee engagement (45-64% engaged) Contracts with risk levels of employee engagement (30- 44% engaged) Contracts with destructive levels of employee engagement (<30% engaged) Based on analysis of 133 contracts and 489 customers in the UK and Europe division in 2011. Employee engagement is a tool that can help retain and win new customers Serco has found that where employee engagement is high, there are more customers promoting Serco
  • 9. Serco Internal 9 At Serco, trend analysis suggests high employee engagement predicts future customer satisfaction. The reverse relationship of customer satisfaction predicting future employee engagement does not appear to be as strong. The effects of employee engagement become stronger over time *IMPORTANT: We need to acquire the next wave of customer survey data to begin establishing whether the trend is statistically significant or not. ….but employee engagement will catch up with them if they neglect it
  • 10. Serco Internal 1 0 Contract Director’s view of their contract? Employees’ experience of Serco delivering the contract? Is this sustainable? Immediate successes might tempt some to ignore engagement or say ‘what we’re doing now works and it doesn’t matter…..’
  • 11. Serco Internal The five contract groups with notable relationships: How do employee engagement scores compare to operating profita 14% 11% 7% 0% 2% 4% 6% 8% 10% 12% 14% 16% High employee engagement (65%+) Opportunity employee engagement (45-64%) Risk / Destructive employee engagement (<45%) Operating Profit (EBIT) as a % of revenues 1 1 High engagement contracts produced DOUBLE the operating profits of risk/destructive engagement contracts. Contract groups represented Division reference Health UK and Europe Facilities Management UK and Europe Public Sector Education SGS UK and Europe Justice and Corrections ASPAC Middle East SME
  • 12. Serco Internal 1 2 Contract Bid: £10m Contract Bid: £10m + Engaged employees + Governing Principles + Rapid engagement of TUPE employees Contract Bid: £10m + Specialist experience of similar contract Contract Bid: £10m + experience of having world’s largest contract portfolio Contract Bid: £10m + well known brand name in the market And it’s more than the numbers, it will make us stand out among competitors!
  • 13. Serco Internal 1 3 Build a balanced portfolio Maintain high rebid and new win rates Make strategic acquisitions Develop new models • Engaged employees are committed to us. That reduces the risk that we lose our expertise that we can transfer to other markets. • Engagement helps build our base of customer promoters. This will help improve our rebid and new win rates. • Engagement helps to strengthen our brand and reputation. That helps make a better case for acquisition by Serco. • Engagement can help us collaborate effectively. • Engagement has been found to correlate with innovation and new ideas. To become the World’s Greatest Service Company Engagement will help us deliver on the core elements of our strategy
  • 14. Serco Internal The Tipping Point 14 Disengagement!
  • 16. Advise | Design | Integrate | Deliver Questions?